Why do Day Traders Lose Money?

Day Trading tips for beginners

Why do Day Traders Lose money?

  • Being greedy, not taking their profits quickly.

  • Not learning to take a loss when the trade goes wrong, take it as an expense.

  • After taking a loss, revenge trading, trying to recuperate, tomorrow is a new day.

  • Not trading in the first hour of the market opening, this is when the most volatility occurs.

  • Holding short positions overnight, only day trade short.

  • Failing to control your emotions, if fear or greed is at play, move to smaller amounts.

  • Not trusting your gut, if it doesn't feel right, don’t open the trade.

  • Being too excited, learn to relax.

  • Start small, don’t be too brave with the amount you invest.

  • Trying to copy exactly what another trader is doing, you need to find a strategy that suits you and perfect it.

  • Overthinking or complicating it, keep your strategy simple.

  • Going alone, find a mentor who is already successful.

  • Failing to stick with your strategy, don’t change during a trade.

  • Not practicing with a demo account, or small amounts, don’t move onto real money till 7 out of 10 trades are in profit.

Be careful, don’t be brave or you could wipe out all your money. Start with small amounts, practice, and grow with experience.

Thanks for visiting and remember, Practice makes perfect.